Foreclosures & Short Sales
HAMP-Here We Go Again with Mortgage Modification Programs
February 1st, 2012 categories: Foreclosures & Short Sales, Informational
Are you having trouble refinancing your mortgage?
Well according to an article in Real Trends:
“White House Announces New Terms to Mortgage Modification Efforts
The Federal government announced this past week that they had issued Executive Orders providing for an extension of the Home Affordable Mortgage Program (HAMP) and a broadening of the terms of the offer to distressed American homeowners. In essence the White House issued orders that extend the program through the end of 2012 from the year just passed, broadened the eligibility requirements so more homeowners could see their mortgages modified, broadened the eligibility to investors in some cases and also requested that Fannie Mae and Freddie Mac offer similar principal reductions.
This is the latest in a series of moves in Washington to provide more assistance to the housing market and distressed homeowners. The HAMP program provides subsidies for mortgage investors to reduce the principal balances owed on mortgages as a means of lifting more homeowners from the negative consequences of heavy mortgage debt and payments. While there was general support for the program, there was little encouraging word from Edward DeMarco, head of FHFA, which governs Fannie Mae and Freddie Mac. Whether FHFA will end up supporting this effort remains to be seen.
While this kind of assistance could provide a positive effect to hundreds of thousands of homeowners, it would not likely have a major impact by itself on the housing market in 2012.”
While I applaud the efforts to help underwater homeowners, it would be helpful if the government reviewed the success rate and accessibility of all of the current programs and work on simplifying the process so consumers, in need, could actually believe the hype about the different programs.
Only yesterday the big news was about Freddie Mac betting against homeowners needing to refinance their underwater mortgages. It makes you wonder why government funded programs are working against troubled homeowners?
Are you having trouble securing a lower rate on your current mortgage?
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And the Real Estate Survey Says…
January 28th, 2012 categories: Foreclosures & Short Sales, Sales
The Campbell/Inside Mortgage Finance Housing Pulse Tracking Survey is a unique look at the national real estate market based on a monthly survey of more than 2,500 real estate agents. The questions are based on what’s really happening in real estate markets across the United States and provide a “gut” view of the day-to-day activity.
And the Housing Trends Survey says…
No surprise- cash buyers (mostly investors) are putting downward pressure on home prices. In December 74% of investors used all cash to purchase homes. Cash and FHA backed mortgages comprise the bulk of the buying market throughout the country (sort of like the good old days when most mortgages were FHA). The chart below shows the trend through the end of 2011.
Source: Campbell Inside Mortgage Finance HousingPulse Tracking Survey
And as we all expected the sale of distressed properties rose steeply as the year ended. Many lenders are sitting on tons of inventory (shadow inventory) and after waiting for the robo-signing problem to end, lenders began again the foreclosure process.
Source: Campbell/InsideMortgage Finance HousingPulse Tracking Survey
The federal government is currently hatching more programs to help the real estate market. Maybe, before the mess housing even more, they should test market the new programs is just a few areas and work out the bugs. I don’t know what you think-but the thought of folks in Washington managing a foreclosure rental program is scary to me.
Need more details about the local Cincinnati real estate market- call or email today.
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What’s Happening with 17% of the Greater Cincinnati Housing Market?
January 6th, 2012 categories: For Buyers, Foreclosures & Short Sales
10880–the current number of active listing of single family homes and condos in the Cincy MLS.
17% (1881) of the the listings are categorized as having somebody other than the consumer as the owner- our way of adapting to the changing real estate landscape. The 17% include:
And like all designations- sometimes agents make a mistake and mark the wrong category- for example several of the “corporate owned” are actually owned by lenders.
So depending on what part of town you’re looking at properties, buyers have a fairly good chance of viewing a home or condo that either is owned by the lender or requires lender approval of the contract. The ownership is not a deal breaker- but may require patience to wait for counter offers and/or contract approvals. Hopefully your agent has discussed the ins and outs of today’s real estate market before you started the home search process. Unfortunately, even though the property was listed as consumer owned you discover, after you make a purchase offer, that lender approval of the contract is required. As agents we rely on the listing details in the multiple listing service to be accurate and up-to-date- but sometimes information is not updated in a timely manner. If you find that a lot of the properties do not have correct ownership displayed, your agent can make a quick phone call to the listing agent prior to writing a purchase contract.
These properties are often “unloved” and shunned because of lender involvement…but if real estate buyers really want a “deal”-how can you ignore 17% of the inventory?
Related Article: Before You Buy a Short Sale
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Politics or Punshment- Revamped HARP
October 28th, 2011 categories: For Sellers, Foreclosures & Short Sales
“HARP 2″ If this was a movie, the headline would not mention that the prequel was pretty much a flop!
The original HARP was touted as providing help to 5 million borrowers and their families. In reality the program is estimated to have actually helped less than a million borrowers.
After watching the housing market continue to decline -dragging other sectors of the economy with it- Washington is rolling out yet another “helping hand” program. In an announcement earlier this week, President Obama announced the expansion of the Homes Affordable Refinance Act (HARP). The high point of the new program is to reward homeowners who continue to make mortgage payments on time- but are in trouble because of falling home values- the opportunity to refinance. Today you cannot refinance if your loan exceeds the maximum LTV (loan-to-value) of 125%.
With all the hype throughout media outlets -it’s hard to believe the actual program details won’t be released until sometime next month. But those in the know are speculating that:
- Appraisals may not be required because the LTV cap has been removed
- Only loans serviced by Fannie Mae and Freddie Mac are covered
- Banks may be given some incentive to not hold owners liable for the underwater part of the loan
- Borrowers fees may be reduced
- Borrowers who shorten their repayment time may get an incentive
Revamped HARP may have been politically motivated- but as long as it performs as touted nobody will complain about the motivation. But if it’s another expensive, impossible to implement program-let’s stand up and start screaming before we continue punishing property owners in search of real help. Underwater homeowners need to stay on top of the parameters when the finalized program details are released.
Need the name of a lender to help you track the details of the revised program or an up-to-date market analysis- call or email me.
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Where are Foreclosures in Greater Cincinnati?
October 18th, 2011 categories: Foreclosures & Short Sales
Foreclosures, short sales and sheriff auctions are certainly impacting greater Cincinnati real estate!
According to RealtyTrac -64,758 distressed properties are listed in Ohio. The listings span foreclosures, short sales and auctions and are spread across residential, multifamily and commercial real estate.
303 of the foreclosures sold in Ohio during September -with a total of 14,163 sold year-to-date in Ohio focuses on the glut of distressed properties in all areas. In September 3 local counties were included in the top ten list for Ohio foreclosure filings. Hamilton County had 573 new filings, Butler County- 411 and Clermont County 252.
The chart below gives you a good idea how many distressed properties are listed in each county:
Greater Cincinnati Foreclosures
| County | Pre-Foreclosure | Sheriff Sale | Bank Owned |
|---|---|---|---|
| Butler | 1087 | 243 | 1993 |
| Clermont | 546 | 224 | 238 |
| Hamilton | 1556 | 388 | 3274 |
| Warren | 637 | 205 | 297 |
It’s not too surprising that Hamilton County bears the brunt of the highest numbers- but Butler County is giving them a run in the contest. With an average sales price for distressed properties in Ohio during September of $127,761. appraisers, Realtors and sellers continue to struggle with appraisals for “normal sales” and this problem will continue for a long time. Another fear is the number of properties the banks are sitting on that are vacant, and in some cases, pretty poor shape. Until the “shadow inventory” is listed and sold -most of the neighborhoods in greater Cincinnati will continue to be affected by the mortgage mess.
If you think you’re in trouble with your mortgage payments-make sure you contact the right people for advice. Not everybody is well versed in short sales and foreclosures. Many times the first person you need to talk to is an attorney- so if you need guidance on where to start the process- call or email for help.
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